2025 Employee Engagement: What Leaders Must Know from the Latest Global Insights

The State of the Global Workplace in 2025

Gallup’s newly released State of the Global Workplace 2025 report reveals a concerning trend: only 21% of employees worldwide are engaged at work, a drop from 23% in 2023. This disengagement represents an estimated $438 billion in lost productivity.

Key Stats:

  • 62% of employees are “not engaged”

  • 17% are actively disengaged

  • Only 33% of employees globally are “thriving” in life

Why Are Employees Disengaged? The Manager Factor

Infographic showing the negative impact of disengaged managers in the workplace, highlighting the chain reaction from disengaged managers to disengaged teams, lower performance, and higher turnover. Created by T2 – The People Performance People.

This visual from T2 illustrates the real impact of disengaged managers—demonstrating how poor leadership cascades into team disengagement, reduced performance, and increased turnover. A call to action for organisations to invest in leadership development.

According to Gallup, 70% of a team’s engagement is driven by their manager. That makes manager engagement a core factor in team performance.

But here’s the problem:

  • Manager engagement dropped from 30% to 27%

  • Young managers (under 35) and female managers saw the steepest drops

  • Only 44% of managers globally have received formal training


Wellbeing and Work Are Deeply Connected

Gallup’s data shows that employees who are engaged at work are also more likely to thrive in life—and less likely to feel stress, loneliness, and burnout.

Explore our latest LinkedIn post where T2 delves into Gallup's 2025 State of the Global Workplace report.

📉 Only 33% of employees are thriving globally
📈 But among engaged employees, that number jumps to over 50%.

What High-Performing Organisations Do Differently

Top organizations that report 70%+ engagement all share three traits:

  • They train managers to lead, not just manage

  • They encourage coaching over commanding

  • They prioritize wellbeing alongside productivity

What T2 Is Doing to Lead the Change

At T2, we turn insights into action. In just a few days, we’re hosting our T2 Leadership Retreat, where senior leaders from forward-thinking companies will:

  • Build modern leadership mindsets

  • Learn practical coaching strategies

  • Align leadership with wellbeing and performance

This is how we support the people of today, leaders of tomorrow, and organisations of the future.

Want to Stay Ahead of Workplace Change?

Leadership starts now.
At T2, we’re committed to helping leaders and organisations thrive in today’s evolving work environment.

Our approach is grounded in the T2 6 Pillars of Leadership — a proven framework designed to unlock performance, wellbeing, and meaningful growth.

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